Michigan Life Insurance State Exam
Questions With Correct Answers
Under a traditional IRA, interest is taxed:
| | | | | |
Only if withdrawn prior to age 59 1/2
| | | | | | |
According to the capital gains rate
| | | | | |
Upon distribution
| |
During the accumulation phase - CORRECT ANSWER✔✔-Upon
| | | | | | |
distribution
Which of these statements concerning Traditional IRAs is CORRECT?
| | | | | | | |
Earnings are not taxable when withdrawn
| | | | | |
Earnings are taxable when withdrawn
| | | | |
,Contribution are never tax deductible | | | |
Contributions are always made by the employer - CORRECT
| | | | | | | | |
ANSWER✔✔-Earnings are taxable when withdrawn | | | |
Which of these describes the result of a modified endowment contract
| | | | | | | | | | |
that failed to meet the seven- pay test?
| | | | | | |
Policy loans are disallowed
| | | |
The premium payments will be tax deductible
| | | | | | |
Pre- death distributions are typically taxable
| | | | | |
Withdrawals will be prohibited - CORRECT ANSWER✔✔-Pre- death
| | | | | | | |
distributions are typically taxable | | |
In order for a contract to be valid, it must
| | | | | | | | | |
be filled with the state
| | | | |
be signing and witnessed by an attorney
| | | | | | |
,be in writing
| | |
contain offer and acceptance - CORRECT ANSWER✔✔-Contain offer and
| | | | | | | |
acceptance
|
Which of the following actions is REQUIRED by a producer who is
| | | | | | | | | | | |
replacing an existing life insurance policy?
| | | | | |
Keep replacement records on file for at least 10 years
| | | | | | | | | |
Notify the existing insurer of the proposed replacement
| | | | | | | |
Submit to the replacing insurer a list of the policies to be replaced
| | | | | | | | | | | |
Offer the insured a 60- day free- look period - CORRECT ANSWER✔✔-
| | | | | | | | | | |
Submit to the replacing insurer a list of the policies to be replaced
| | | | | | | | | | | |
Who were Keogh plans designed to provide pension benefits for?
| | | | | | | | |
Corporate officers |
, Public school employees
| |
The self-employed
|
Government employees - CORRECT ANSWER✔✔-The self emplyed
| | | | | |
A producer's fiduciary duty requires that
| | | | | |
premiums are maintained in a personal bank account until remittance to
| | | | | | | | | |
insurer
| |
premiums be deposited in an interest bearing account
| | | | | | | |
premiums are forwarded to the insurer on a timely basis
| | | | | | | | | |
|
premiums be commingled - CORRECT ANSWER✔✔-Premiums are
| | | | | | |
forwarded on a timely basis | | | |
An individual who removes the risk of losing money in the stock market
| | | | | | | | | | | | |
by never purchasing stocks is said to be engaging in
| | | | | | | | | |
Risk reduction
| |
Questions With Correct Answers
Under a traditional IRA, interest is taxed:
| | | | | |
Only if withdrawn prior to age 59 1/2
| | | | | | |
According to the capital gains rate
| | | | | |
Upon distribution
| |
During the accumulation phase - CORRECT ANSWER✔✔-Upon
| | | | | | |
distribution
Which of these statements concerning Traditional IRAs is CORRECT?
| | | | | | | |
Earnings are not taxable when withdrawn
| | | | | |
Earnings are taxable when withdrawn
| | | | |
,Contribution are never tax deductible | | | |
Contributions are always made by the employer - CORRECT
| | | | | | | | |
ANSWER✔✔-Earnings are taxable when withdrawn | | | |
Which of these describes the result of a modified endowment contract
| | | | | | | | | | |
that failed to meet the seven- pay test?
| | | | | | |
Policy loans are disallowed
| | | |
The premium payments will be tax deductible
| | | | | | |
Pre- death distributions are typically taxable
| | | | | |
Withdrawals will be prohibited - CORRECT ANSWER✔✔-Pre- death
| | | | | | | |
distributions are typically taxable | | |
In order for a contract to be valid, it must
| | | | | | | | | |
be filled with the state
| | | | |
be signing and witnessed by an attorney
| | | | | | |
,be in writing
| | |
contain offer and acceptance - CORRECT ANSWER✔✔-Contain offer and
| | | | | | | |
acceptance
|
Which of the following actions is REQUIRED by a producer who is
| | | | | | | | | | | |
replacing an existing life insurance policy?
| | | | | |
Keep replacement records on file for at least 10 years
| | | | | | | | | |
Notify the existing insurer of the proposed replacement
| | | | | | | |
Submit to the replacing insurer a list of the policies to be replaced
| | | | | | | | | | | |
Offer the insured a 60- day free- look period - CORRECT ANSWER✔✔-
| | | | | | | | | | |
Submit to the replacing insurer a list of the policies to be replaced
| | | | | | | | | | | |
Who were Keogh plans designed to provide pension benefits for?
| | | | | | | | |
Corporate officers |
, Public school employees
| |
The self-employed
|
Government employees - CORRECT ANSWER✔✔-The self emplyed
| | | | | |
A producer's fiduciary duty requires that
| | | | | |
premiums are maintained in a personal bank account until remittance to
| | | | | | | | | |
insurer
| |
premiums be deposited in an interest bearing account
| | | | | | | |
premiums are forwarded to the insurer on a timely basis
| | | | | | | | | |
|
premiums be commingled - CORRECT ANSWER✔✔-Premiums are
| | | | | | |
forwarded on a timely basis | | | |
An individual who removes the risk of losing money in the stock market
| | | | | | | | | | | | |
by never purchasing stocks is said to be engaging in
| | | | | | | | | |
Risk reduction
| |
